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LONDON -- Friday's fall on Wall Street meant the U.K. got off to a bad start, but by the end of the session the London markets had managed to claw their way back to end roughly unchanged.


FTSE 100

closed up 2.9 points, or 0.1%, at 6,381.30, while the


was virtually unchanged at 3,752.01. However, it was an unimpressive low-volume start to the week and it's hard to read too much into today's movements.

Telecom stocks suffered early on as negativity swept the sector following a slump in the price of

Deutsche Telekom

(DT) - Get Dynatrace, Inc. Report

. The German leviathan fell heavily on fears that it will run into regulatory problems over its takeover of the

Voicestream Wireless


. There are also some concerns that at $50.7 billion Deutsche Telekom may be paying too much for its target. Deutsche Telekom tanked 5.87 euros, or 10.6%, to 49.40 ($46.27).

British Telecom


, which is increasingly starting to look like a stock that few want in their portfolios, closed 8p lower, or 0.9%, at 890 ($13.44). Footsie heavyweight

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Vodafone AirTouch

(VOD) - Get Vodafone Group Plc Report

also started the day under the cosh, despite several buy recommendations from brokers. But news that Holland's auction for third-generation mobile telephone licenses had cost telecom companies considerably less than originally forecast provided enough of a fillip to help the stock close up 6p, or 2.0%, at 302.


also continued its recent good run after announcing a deal, said by the company to be worth around

2 billion, to build a fiber-optic network for British Telecom. Marconi closed 49p higher, or 5.0%, at



Telewest Communications



Cable &Wireless



Colt Telecom


all remained firmly down in the dumps. In percentage terms, Telewest was the main index's biggest faller, its cause not helped by a downgrade from HSBC. The stock closed down 12p, or 5.1%, at 223, while C&W eased 44p, or 3.3% to

12.81 and Colt shed 35p, or 1.4%, to


Speculation continued about what will be the eventual outcome of the decision last week by media companies

Carlton Communications



United News & Media


to call off their proposed merger because of regulatory problems.

Granada Media

is viewed as the most likely predator with United Media as its prey. Granada finished down 11p, or 1.8%, at 602, United closed 32p higher, or 3.3%, at 990, while Carlton finished 2p lower, or 0.3%, at 800.

Europe's other major stock markets closed mixed, with the

CAC 40

in Paris closing up 38.5, or 0.6%, at 6,502.6. Late in the German trading session, the

Xetra Dax

in Frankfurt was down 42.6, or 0.6%, at 7,330.7 and the Neuer Markt's tech-heavy

Nemax 50

index was 6.6 higher, or 0.1%, at 6,255.8.

France Telecom


closed up 4.00 euros to 146.50 and


(TEF) - Get Telefónica SA Report

climbed 0.25 euros to 24.76.

Finnish telco outfit



slumped 6.70 euros, or 13%, to 44.90 after announcing disappointing first-half results and issuing a gloomy outlook for the rest of the year.

In Frankfurt, software maker


(SAP) - Get SAP SE Report

rose 5.38 euros, or 2.2%, to 253.00, but



dropped 1.70 euros, or 2.8%, to 57.36 amid concerns about the carmaker's upcoming second-quarter figures.



fell 3.40 euros, or 5%, to 64.80 after announcing it would take over

Bank Austria

, that country's largest bank. The merged bank will be a major player in Eastern Europe. Bank Austria shares trading in Frankfurt were up 5.80 euros, or 10.6%, at 60.80.